Micron Faces Legal Battle and Revenue Dip as US-China Tensions Escalate

Chinese chipmaker Yangtze Memory Technologies Co filed a lawsuit against U.S. rival Micron Technology Inc MU for alleged infringement of eight of its patents at a time when the U.S. intensified its semiconductor technology restrictions on China.

YMTC registered the case against Micron and unit Micron Consumer Products Group on November 9 at the U.S. District Court for the Northern District of California.

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It claims that Micron allegedly turned to YMTC's patented technology to fend off competition and to gain and protect market share. Also, Micron did not pay its fair share to use the patented inventions, Reuters reports.

Micron makes DRAM and NAND flash memory chips and competes with South Korea's Samsung Electronics Co SSNLF, SK Hynix, and Japan's Kioxia. 

The lawsuit coincided with the U.S. intensifying semiconductor technology sanctions against China, citing national security threats. China retaliated by imposing curbs on U.S. companies like Micron.

China once generated half of Micron's $20 billion revenue in FY17. The share plunged to 16% in 2022, a year in which it closed DRAM operations in Shanghai.

Last week, Micron showcased its latest technologies at the China International Import Expo, marking its debut in the event. The other participants included Qualcomm Inc QCOM, ASML Holding N.V. ASML and Advanced Micro Devices, Inc AMD.

Price Action: MU shares traded lower by 1.53% at $74.21 on the last check Monday.